Progress For Sonida Senior Living
Just like for almost everyone else, Sonida Senior Living had some good news to report for the second quarter as well as some areas that did not improve as much as maybe expected. But progress is being made to achieve stabilized occupancy, cash flow and operating margins. Even though weighted average occupancy increased by 120 basis points from the year-ago quarter to 83.9%, it declined by 10 basis points from the first quarter this year. For the sector, the second quarter has rarely been a good one for census, but other companies have been reporting increases for both the first and second quarters. The 8% rate increases have caused some move outs for financial reasons, but the increases... Read More »
New Class-A Seniors Housing Community Opens
Magnolia Bridge at Murrells Inlet, developed by Bourne Financial Group and operated by SRI Management, celebrated its grand opening in July after receiving its license to operate in June. Bourne is a real estate investment company specializing in seniors housing development, acquisitions, and asset management. SRI has independent living, assisted living and memory care communities throughout the Southeast. Magnolia Bridge is a Class-A community located in Murrells Inlet near Myrtle Beach, South Carolina, with 170 units of independent living, assisted living and memory care. The community stands four stories tall and is in close proximity to local boutiques. It has amenities such as... Read More »
Sabra Health Care REIT Stays in Good Shape
All we can say is that Sabra Health Care REIT is fortunate to have gotten out of its joint venture with TPG and the former Enlivant portfolio. TPG bought those assets at a very low per-unit price, and Sabra bought its 49% interest from them at a very high per-unit price, more than double TPG’s price. While we understood the need to diversify Sabra’s portfolio into more private pay seniors housing, these were not the right assets. But they were available at the time, and if it worked out Sabra had an option for the remaining 51%. Even without the pandemic, we do not believe the value would have climbed to merit buying the other 51%. The buildings were small, on the old side and were... Read More »
Chartwell Retirement Residences Sees Census Gains
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, serving more than 25,000 residents in four provinces, posted a net loss in the second quarter, but same-community occupancy increased by 180 basis points year over year to 79.2%. The operating margin at the facility level increased by 120 basis points year over year to 32.7%. The loss in the quarter was mostly due to higher finance costs, higher G&A expense and negative changes in fair values of financial instruments, so not the operations. It is interesting that of the large REITs with major operations in Canada, Ventas has the best occupancy rate at 94.3% in the second quarter, up 90 basis points year... Read More »
National Health Investors Sees Improvements
National Health Investors turned in a mixed second quarter but appears to see more tailwinds than headwinds as it approaches 2024. They are not out of the woods with some of their providers yet, and deferrals are still a bit of a problem, but census levels are rising, margins are increasing and they are seeing some coverage ratios increasing. Investors, however, focused on a slight decrease in earnings guidance for the rest of the year and rent deferrals, sending the share price down by 6.4% after the release. The REIT’s small SHOP portfolio (15 properties) posted a nice $200,000 increase in NOI from the first quarter to $2.1 million. The operating margin increased by 170 basis points from... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
